The Canadian dollar advanced against the majority of major counterparts in the European session on Monday, as oil rates climbed, with recently’s landmark decision by the OPEC to cap oil production raising hopes for tightened up oil markets.

Crude for January shipment rose $0.46 to $52.14 per barrel.

Investors now concentrate on the upcoming meeting between OPEC & & non-OPEC nations on December 10 in Vienna, where the countries would settle the information on the output cuts.

Starting from January, OPEC nations are expected to lower the output by around 1.2 million barrels each day and non-OPEC nations would contribute another 600,000 barrels per day to the cuts.

The currency was underpinned by increasing European shares, as investors appeared to shrug off the outcome of the Italian referendum and subsequent resignation of Prime Minister Matteo Renzi.

The currency was lower against its significant counterparts in the Asian session, with the exception of the euro.

The loonie climbed to a 7-1/2-month high of 86.06 versus the yen, off its early 5-day low of 84.59. The loonie is likely to find resistance around the 88.00 mark.

Survey figures from Cabinet Office showed that Japan’s customer confidence declined for the second straight month in November to the weakest level in 6 months.

The seasonally adjusted customer confidence index was up to 40.9 in November from 42.3 in the previous month. In September, the reading was 43.0.

The loonie, having actually fallen to a 4-day low of 1.3357 versus the greenback at 6:15 pm ET, reversed instructions and advanced to 1.3274. If the loonie extends increase, 1.30 is perhaps seen as its next resistance level.

The loonie was trading at 0.9889 versus the aussie, reversing from an early 5-day low of 0.9939. More gains might take the loonie to a resistance near the 0.97 region.

On the flip side, the loonie held consistent against the euro, following a 5-day low of 1.4271 hit at 7:05 am ET. This might be compared with the Asian session more than 1-year high of 1.4027.

Study arises from IHS Markit showed that the euro area economic sector expanded at the fastest speed in 11 months in November however the rate of development was somewhat weaker than initially estimated.

The last composite output index increased less-than-estimated to 53.9 in November from 53.3 in October. The flash score was 54.1.

Looking ahead, Markit’s U.S. final services PMI, ISM non-manufacturing composite index and labor market conditions index for November are due in the New york city session.

The Federal Reserve Bank of St. Louis President James Bullard will discuss the United States financial outlook at the Arizona State University’s annual financial forecast luncheon in Phoenix at 2:05 pm ET.

Recently, EUR/NZD has been moving upwards. The price tested the level of 1.5131 in a high volume. Using the market profile on 30M time frame, I found strong trend day and selling looks very risky. I found successful test of supply and the pair is trading above 21SMA. Watch for buying opportunities on the dips. An upward target is set at the price of 1.5290 (Fibonacci expansion 261.8%).

Global macro introduction for 05/12/2016: Information of the November 2016 UK Markit/CIPS Providers PMI report revealed better than anticipated figures. Market participants expected a minor drop from 54.5 indicate 54.2 points, however the data beat expectations of 55.2 points for the last month. The greatest gain was noted in brand-new orders: 54.9 versus 55.7 previously. All the data looks products on the surface, not just the PMI for services and production, but the remainder of the financial signs are still beating expectations. The belief is dropping lower, with politics and inflation the primary reasons behind the decline. This quote from Markit report is the ideal conclusion of the present situation: “The additional upturn in the vast services sector reveals that the pace of UK financial development stays resiliently robust in the 4th quarter, regardless of continuous unpredictability caused by Brexit”.

Let’s now take a look at the GBP/USD technical photo in the 4H time frame. The bulls have handled to break out above the technical resistance at the level of 1.2676 and it appears like they are aiming to evaluate the next technical resistance at the level of 1.2772, which is just above the 50%Fibo of the last swing down. In case of a more breakout, the next resistnace is 61%Fibo at the level of 1.2903.

The intraday resistance at the level of 1.3356 is the key level to the upside. If this level is not clearly violated, the market will be trading sideways between the weekly pivot at the level of 1.3342 and intraday support at the level of 1.3255. Please pay attention that the bullish divergence between the price and momentum oscillator supports the bullish view.

Support/Resistance:

1.3255 – Intraday Support

1.3342 – Weekly Pivot

1.3356 – Intraday Resistance

1.3431 – WR1

1.3464 – Wave b High

Trading recommendations:

Day traders should open buy orders only if the level of 1.3356 is clearly violated. Otherwise, the sideways price action do not justify engaging in any trade for now.

A sharp decline towards the level of 118.71 was labeled as wave (iv) or a (green) and since then the market has been rallying in order to complete the last wave up. The projected target is at the level of 122.71 (weekly pivot resistance level 1), but it might extend higher towards the level of 124.00. When the impulsive structure is completed, a larger time frame correction is being expected.

Support/Resistance:

124.00 – WR2

122.71 – WR1

121.85 – Intraday Support

120.62 – Weekly Pivot

119.40 – WS1

118.71 – Technical Support

Trading recommendations:

All day traders with open buy orders should prepare to take the profits off the table at the level of 122.71 and wait for another trading setup to occur shortly.

The GBP/USD pair has broken resistance at 1.2665 which acts as a support this morning. The pair is moving between the levels of 1.2665 and 1.2836. As the trend is still above the 100 EMA, a bullish outlook remains the same as long as the 100 EMA is headed to the upside. Consequently, the level of 1.2836 remains a key resistance zone. Therefore, there is a possibility that the GBP/USD pair will move upwards above 1.2665, which coincides with a ratio 61.8% of Fibonacci retracement. The falling structure does not look corrective. In order to indicate a bearish opportunity above 1.2665. So, buy above this level with the first target at 1.2836 . Moreover, if the pair succeeds to pass through 1.2836, it will move upwards continuing the bullish trend development to 1.2936 in order to test the weekly resistance 2. However, if a breakout happens at 1.2544, this scenario may be invalidated. Also, you have to note that it is likely to trade in a higher range as long as it remains above the level of 1.2544. Hence, the major support was already set at the level of 1.2544.

The service industry in Australia continued to expand in November and at a much faster rate, the latest study from the Australian Market Group revealed on Monday with a service PMI rating of 51.1.

That’s up from 50.5, and it moves even more above the boom-or-bust line of 50 that separates growth from contraction.

“The small lift in the rate of growth in the services sector is motivating although it remains well short of a persuading rebound from its recent slump,” AiG president Innes Willox stated in a declaration accompanying the data.